Emirates Islamic Bank Business Financing

Minimum Salary
500,00 د.إ

Flat Rate
7.17%

Reducing Rate
13%

Maximum Term
48 Months

Monthly Payment
AED 36,000

Description

For short- to medium-term working capital and asset financing up to AED 3 million unsecured (AED 5 million secured), the Murabaha/Salam Business Finance facility offers flat profit rates and flexible tenors. For trade-cycle support, the Business Overdraft (Covered Drawing Account) provides on-demand liquidity.

Features

Product Suite Overview

Facility Name	Purpose	Maximum Facility	Tenor	Structure & Security
Murabaha / Salam Business Finance	Working capital & fixed assets finance	AED 3 million unsecured AED 5 million secured	6–36 months	Murabaha (cost-plus) or Salam (deferred purchase); collateral or guarantee based on amount
Ijara Asset Finance	Equipment, vehicles, machinery leasing	AED 5 million	12–60 months	Ijara lease; asset ownership pledged
Business Overdraft (CDA)	Day-to-day liquidity, payroll, inventory	AED 1 million	Revolving (annual review)	Unsecured up to limit; lien on account balances
Trade Finance	Letters of Credit, Guarantees, LC Murabaha	As required	Per trade cycle	Cash margin or receivables assignment

Profit Rates & Charges

Profit Rates (p.a.)

Facility	Profit Rate Structure	Rate
Murabaha / Salam Business Finance	Flat profit (declining balance)	8.0% – 14.0%
Ijara Asset Finance	Flat lease rate	7.5% – 12.0%
Business Overdraft	Drawn balance	7.5% – 10.5%
Trade Finance	Issuance fee + monthly service	0.13125% pm (min AED 262.50)

Schedule of Fees (all exclusive of 5% VAT)

Fee Type	Charge
Processing / Arrangement Fee	1.50% of financed amount (min AED 500; max AED 2,500)
Early / Partial Settlement Fee	5.00% of outstanding balance on Murabaha/Salam facilities
Takaful (Credit Insurance)	0.94% per month of outstanding balance
Drawdown Amendment / Cancellation	AED 105 per request
Instalment Deferment (Business Finance)	AED 262.50 per deferment
Overdraft Setup Fee	AED 105
Liability / No-Objection Letter	AED 105
Documentary Credit Issuance	AED 105 + 0.13125% pm of credit value
Amendment to Documentary Credit	0.13125% pm of amendment value (min AED 262.50)

Eligibility Criteria

Business Tenure: Minimum 1 year of UAE operation.
Annual Turnover: ≥ AED 1.5 million for unsecured; no minimum for secured facilities.
Legal Structure: UAE-registered LLCs, Free Zone entities, branches (trading, contracting, manufacturing, services).
Credit Profile: Clean corporate and principal credit history.
Shari’a Compliance: Activities must align with Islamic principles.

Documents Required

Completed Emirates Islamic Business Finance application form.
Valid Trade License and Commercial Registration certificate.
Memorandum & Articles of Association; Board resolution authorizing finance.
Audited or management-prepared financial statements (last 1–2 years, per facility size).
Six months of business bank statements.
Emirates ID, passport, and UAE visa copies of authorized signatories.
Title deeds or asset documents for collateralized facilities.
Corporate or personal guarantees, if required by facility size.

Additional Info

Competitive Flat Rates: Fixed profit rates enable precise budgeting and cost forecasting.
Unsecured Limits: Up to AED 3 million without collateral for eligible SMEs.
Flexible Tenors & Structures: Options between Murabaha, Salam, and Ijara to match cash-flow profiles.
On-Demand Liquidity: Overdraft auto-replenishes; interest only on utilized balances.
Trade Support: Comprehensive LC and guarantee solutions with Murabaha structuring for import finance.
Digital Servicing: End-to-end application, drawdown, and servicing via businessONLINE platform.
Dedicated Relationship Management: Sector-specialist RMs provide advisory, structuring, and post-disbursement support.
Shari’a Governance: All products endorsed by Emirates Islamic’s Internal Shari’a Supervision Committee.